Suppose that a drug company produces a new drug that cures baldness. The inverse demand curve for the drug is P = 205 â 20Q, where Q measures the number of pills in millions. The various costs of production are given by TC = 100 + 5Q, ATC = 5 + 100/Q, and MC = 5. If the government grants this firm a patent, it will earn profits of ______. If the government revokes the patent and the firm must sell its drug at marginal cost because of competition, it will earn profits of ______.
A) $600 million; $500,000
B) $2 billion; $0
C) $400 million; â$100 million
D) $70 million; â$25 million
I know the answer but do not know the steps to get to it. Thanks!
Walnut Corporation sells desks at $480 per desk. The costs associated with each desk are as follows: Direct materials $19...Jun 10 2021
In the Joule-Thomson experiment the initial state of the gas and the final pressure are chosen. The final temperature is measured. Experimental data for nitrogen are show...Jun 06 2020
Exposure and Response Prevention for the treatment of Generalized Anxiety Disorder in College Students Part I: A) TITLE: (Ex: Exposure and Response Prevention for the ...Mar 14 2020
The process of acquiring a gene from another organism is called transformation. (A) True (B) FalseMar 14 2018
Inflation mostly affects current account balance while interest rate mainly affects capital accoun, it's true or false?Aug 16 2020
Discuss the steps involved in the reengineering process.Dec 10 2019
If it takes 84 mean hours and standard deviation is 18 hours with 40 mechanics randomly selected find probability that their mean rebuild time is less than 76 hoursMay 02 2020
it is possible to dissolve significant amounts of Mg(OH)2 n solution in which the concentration of either Mg or OH is very very small. explain in terms of KspMar 30 2020
Fabrication of a parabolic mirror. It is proposed to make a backing for a parabolic mirror, by rotating a pan of slow-hardening plastic resin at constant speed until it h...Aug 06 2020
Dahlia Company purchased equipment on April 1, 2017, for $105,000. It is estimated that the equipment will have a $5,000 residual value at the end of its 5-year useful li...Jul 15 2021